Managing Your Assets

When you start organizing your portfolio you will want to consider how you will
be spending your money after you retire. Some money will be deposited directly
into your checking account; such as Social Security where as other income could
be less predictable. It is always nice to get extra income you are not counting
on but you must not plan on this.

The trick of the matter is to produce enough money year after year to sustain you for as
long as you will need it. In order for this to be accomplished your profit must
be greater than the rate of inflation. In other words it is necessary that some
investments grow in value at the same time that other investments are providing
you with income.

Some reliable companies that pay dividends can provide a steady income if they
are continually growing themselves. Because this is unpredictable, however,
it is important then to have some investments that are reliable and are in an
instrument that can be depleted. You will want to organize the amount of withdrawal
from different instruments so that your assets will last as long as you do.
It would be wise to take from the amount that you receive monthly and put a
reserve away for large but anticipated expenses.

Timing Withdrawals

It is all right to deliberately spend your money as long as you don't die before
it runs out. Tax deferred investments make it mandatory for withdrawals to be
made. IRAs are a good example of this. Taxable investments work differently. You can choose how much you might
care to withdraw and you can allow the principal to keep growing. By having
the options with different retirement accounts you broaden your base and organize
a portfolio that should cover all areas at retirement.

Material discussed is meant for general illustration and/or informational purposes
only and it is not to be construed as tax, legal, or investment advice. Although
the information has been gathered from sources believed to be reliable, please
note that individual situations can vary therefore, the information should be
relied upon when coordinated with individual professional advice.

Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rate rise and are subject to availability and change in price.

This web site may contain concepts that have legal, accounting and tax implications. It is not intended to provide legal, accounting or tax advice. You may wish to consult a competent attorney, tax advisor, or accountant.